The Optimal Level of Pollution Is

question 180

Multiple Choice

The optimal level of pollution is

• A)zero
• B)the level at which the marginal social cost of air quality equals the marginal social benefit
• C)the level at which the average social cost of air quality equals the average social benefit
• D)the level at which the total social cost of air quality equals the total social benefit
• E)the level at which the marginal social cost of air quality is minimized

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Definitions:

Consumption

The employment of goods and services within home environments.

Income

Monetary payment received for work or through investments.

Interest Rate

The fraction of a loan that incurs interest costs for the borrower, usually described as an annual percentage rate.

Utility Function

A mathematical representation of how a consumer's satisfaction or preference for goods and services is dependent on their consumption levels.